Active Income Portfolio
For those seeking a sustainable income strategy, with a difference.
About the Active Income Portfolio
Our philosophy at Market Matters has always been around active management, and our income portfolio stays true to label. Combining an active approach to income producing equities, ETFs and listed Income Securities such as Hybrids, the portfolio will satisfy those looking for sustainable income with significantly less volatility than the market.
Portfolio | 1M | 3M | 6M | 1y | 3y pa | ITD pa* |
---|---|---|---|---|---|---|
ACTIVE INCOME | (1.33%) | 3.08% | 2.74% | 7.33% | 9.58% | 8.10% |
RBA CASH RATE +4% | 0.65% | 2.05% | 4.07% | 8.08% | 5.83% | 5.17% |
VALUE ADD | (1.98%) | +1.03% | (1.33%) | (0.75%) | +3.75% | +2.93% |
COMPANY CODE | STOCK NAME | WEIGHT (%) | RISK | TIME HORIZON | ENTRY DATE | ENTRY PRICE ($) | LAST PRICE ($) | DIVIDENDS ($) | DAILY CHANGE (%) | GAIN / LOSS (%) |
---|---|---|---|---|---|---|---|---|---|---|
AGL | AGL Ltd | 4 | Moderate | Long | 23/02/2023 | 7.50 | 8.34 | 0.43 | 0.85 | 16.93 |
ANZPI | ANZ Capital Notes 6 | 6 | Low | Long | 8/07/2021 | 100.33 | 103.10 | 12.38 | 0.00 | 15.10 |
APA | APA Group | 5 | Moderate | Medium | 26/05/2023 | 9.82 | 8.41 | 0.56 | 1.45 | -8.66 |
BHP | BHP Group | 8 | Moderate | Long | 11/12/2019 | 40.38 | 44.27 | 13.52 | 1.35 | 43.12 |
CBA | Commonwealth Bank | 6 | Moderate | Medium | 13/03/2020 | 61.33 | 120.34 | 21.05 | 0.28 | 130.54 |
CBAPG | Commonwealth Bank Hybrid | 5 | Low | Medium | 09/04/2018 | 100 | 102.40 | 33.46 | 0.01 | 35.86 |
CNI | Centuria Capital Group | 4 | Moderate | Medium | 29/07/2022 | 2.065 | 1.75 | 0.17 | 0.00 | -7.02 |
DXS | Dexus Property Group | 4 | Moderate | Medium | 13/12/2022 | 8.02 | 7.91 | 0.52 | 1.80 | 5.11 |
GSBG25 | Aust. Govt. Bond 3.25% 21.04.2025 | 6 | Low | Long | 11/05/2022 | 100.54 | 100.92 | 3.79 | 0.05 | 4.15 |
MTS | Metcash | 5 | Moderate | Medium | 9/12/2020 | 3.5 | 3.91 | 0.88 | 0.00 | 36.86 |
NAB | National Australia Bank | 7 | Moderate | Medium | 15/12/2022 | 29.64 | 34.64 | 2.39 | -0.14 | 24.93 |
NABPF | National Bank Hybrid | 5 | Low | Long | 21/03/2019 | 100 | 104.75 | 27.61 | 0.14 | 32.36 |
NABPI | NAB Capital Notes 6 | 5 | Low | Long | 13/07/2022 | 98.94 | 103.68 | 11.77 | 0.55 | 16.69 |
NHC | New Hope Coal | 4 | High | Medium | 22/11/2022 | 5.55 | 4.65 | 0.80 | 4.26 | -1.80 |
ORA | Orora | 4 | Moderate | Medium | 16/11/2023 | 2.56 | 2.72 | 0.05 | 1.87 | 8.20 |
OZBD | BetaShares Australian Composite Bond ETF | 5 | Low | Long | 13/04/2022 | 45.28 | 44.64 | 2.51 | 0.31 | 4.13 |
TLS | Telstra Group | 5 | Low | Medium | 9/06/2021 | 3.43 | 3.86 | 0.80 | 2.12 | 35.86 |
WBCPK | Westpac Hybrid | 5 | Low | Long | 7/09/2022 | 100.40 | 102.31 | 11.65 | 0.11 | 13.51 |
Company code | STOCK NAME | WEIGHT(%) | RISK | TIME HORIZON | EXIT DATE | ENTRY PRICE ($) | CLOSE PRICE ($) | DIVIDENDS ($) | GAIN / LOSS (%) |
---|---|---|---|---|---|---|---|---|---|
MFG | Magellan Financial Group | 4 | High | Medium | 08/01/2024 | 8.73 | 9.09 | 0.93 | 14.78 |
WES | Wesfarmers Ltd | 4 | Moderate | Long | 16/11/2023 | 47.85 | 53.94 | 4.16 | 21.42 |
GEM | G8 Education | 3 | Moderate | Medium | 22/08/2023 | 1.29 | 1.08 | 0.06 | -11.63 |
PPT | Perpetual | 4 | Moderate | Medium | 27/06/2023 | 24.7 | 25.4 | 2.83 | |
MXT | MCP Master Income Trust | 5 | Low | Long | 15/06/2023 | 2 | 1.91 | 0.49 | 20 |
AGL | AGL Energy | 1 | Moderate | Medium | 21/04/2023 | 6.95 | 8.59 | 23.6 | |
TLS | Telstra Corp Ltd | 2 | Moderate | Medium | 21/04/2023 | 3.43 | 4.27 | 0.3 | 33.24 |
WES | Wesfarmers Ltd | 2 | Moderate | Medium | 21/04/2023 | 47.85 | 52.01 | 2.69 | 14.32 |
SGP | Stockland | 4 | Moderate | Medium | 08/02/2023 | 4.18 | 4.01 | 0.26 | 0.22 |
PDL | Pendal Group | 4 | Moderate | Medium | 12/01/2023 | 4.2 | 3.61 | 1.67 | 25.71 |
BHP | BHP Group | 2 | Moderate | Long | 08/12/2022 | 38.56 | 46.42 | 10.16 | 46.73 |
AGL | AGL Energy | 3 | Moderate | Medium | 08/12/2022 | 6.83 | 8.07 | 18.15 | |
APA | APA Group | 4 | Moderate | Medium | 08/12/2022 | 9.75 | 11.03 | 13.12 | |
SSM | Service Stream | 4 | High | Medium | 22/11/2022 | 1.565 | 0.745 | 0.05 | -49.2 |
BOQ | Bank of QLD | 6 | Moderate | Medium | 17/08/2022 | 8.7 | 7.37 | 0.31 | -11.72 |
APA | APA Group | 4 | Low | Medium | 10/08/2022 | 8.59 | 12.14 | 0.53 | 47.5 |
CWNHB | Crown Resorts Hybrid | 4 | Moderate | Medium | 29/07/2022 | 98.26 | 102.75 | 3.02 | 7.64 |
IFL | Inisgnia Financial | 5 | Moderate | Medium | 13/07/2022 | 3.59 | 2.73 | 0.4 | -12.81 |
MFG | Magellan Financial Group | 3 | Moderate | Medium | 13/07/2022 | 33.85 | 12.15 | 1.57 | -59.47 |
SIQ | Smart Group | 5 | Moderate | Medium | 13/07/2022 | 6.98 | 6.62 | 1.43 | 15.19 |
WDS | Woodside | 1.45 | High | Medium | 15/06/2022 | 29.76 | 32.54 | 2.3 | 17.05 |
IGL | IVE Group Ltd | 3 | Moderate | Medium | 11/05/2022 | 2.28 | 1.8 | 0.66 | 7.89 |
AGL | AGL Energy | 3 | Moderate | Long | 03/05/2022 | 5.35 | 8.38 | 0.16 | 59.63 |
NSR | National Storage REIT | 4 | Moderate | Medium | 13/04/2022 | 2.04 | 2.65 | 0.09 | 34.31 |
XARO | ActiveX Ardea Real Outcome Bon | 5 | Low | Long | 13/04/2022 | 26.47 | 25.28 | 1.6 | 1.55 |
AWC | Alumina Ltd | 4 | Moderate | Medium | 24/02/2022 | 2.2 | 1.95 | -11.36 | |
DXS | Dexus/AU | 4 | Low | Long | 25/11/2021 | 9.2 | 11.27 | 0.23 | 25 |
IAG | Insurance Australia Group Ltd | 6 | Moderate | Medium | 11/11/2021 | 4.69 | 4.47 | 0.13 | -1.92 |
NAB | National Australia Bank Ltd | 6 | Moderate | Long | 4/11/2021 | 18.71 | 28.7 | 1.35 | 60.61 |
CBA | Commonwealth Bank of Australia | 1 | Moderate | Medium | 29/09/2021 | 61.33 | 102.63 | 6.05 | 77.21 |
Recent Opinion for the Income Portfolio
First Up
As the market slips into the Easter long weekend, some profit-taking felt evident on Tuesday, no great surprise considering the index has rallied over 15% from its November low. The afternoon selling wasn’t overly aggressive, but as we touched on yesterday morning, the markets are a touch bullish and long; hence, some book-squaring/selling by the weak longs didn’t encounter any significant resistance. One of the main themes of 2024 to date has been the strong getting stronger and often the weak getting weaker, even as the ASX200 forged to fresh all-time highs. A quick glance at some sectors three months into the year tells the tale: remember, the index is up a healthy +2.5%. Read moreInterest Rates / Bond Yields
Australian 3-years edged lower last week, taking more of its lead from the FOMC than the strong local employment data. However, a cursory glance at their chart shows they’ve been in a holding pattern through 2024, trading midway between 3% and 4%. Our preferred scenario is that we will see a test of the former over the coming months. Read moreCenturia Capital Group (CNI) $1.80
We have discussed CNI a number of times over the last year as the position weighed on portfolio performance. Fortunately, we held our nerve, but prudent portfolio management precluded us from increasing our positions. However, we will review our position if/when we see another ~10% on the upside, although its yield is particularly attractive for our Income Portfolio. Read moreDexus Group (DXS) $7.66
Dexus is Australia’s largest office landlord, and while there is significant conjecture around the future of office, we believe this uncertainty is more than captured in the price. They delivered a solid, ‘less bad’ than expected, result in February, although the stock hasn’t yet embraced the numbers. Guidance for the full year was unchanged despite the stronger 1H, with a flagged FY24 dividend of 48 cps, which puts DXS on a yield of ~6.2%. Read moreNew Hope Corp (NHC) $4.60
The Coal producer reported a big decline in 1H24 earnings yesterday, which was to be expected given the significant pullback in Coal prices over the past year, and they think Thermal Coal, used in power generation, will stay around these sorts of levels ($US120-130/tonne) on average over the longer term, but with plenty of price spikes along the way. The world is rightly moving towards net zero, and coal, specifically the stuff used to generate power, has a finite life span. Read moreInterest Rates / Bond Yields
Australian 10-years edged higher last week following the robust US economic data, but they appear comfortable around 4%, where they’ve spent most of 2024. Over the last 18-months, the 4% area has been the average yield for the 10s, with 1% swings either side. Our preferred scenario moving forward is another foray on the downside, which would unfold if the RBA gets inflation firmly under control. Read moreNational Australia Bank (NAB) $33.50
NAB fell 2.8% on Thursday, better than Westpac & ANZ's 3.8% decline but still enough to have a meaningful impact on the index, accounting for 10-points of the ASX200’s decline. Read moreCommonwealth Bank (CBA) $116.22
CBA is often referred to as the most expensive bank in the world, but ever since it floated at $5.40 in 1991, the company has yet to do anything to warrant losing this tag. It is definitely not cheap, but when we combine a fully franked yield of almost 4% with the stability of Australia’s largest bank, it's hard to imagine aggressive selling following Macquarie’s note, especially considering the tax ramifications for many with the stock around its all-time high. Read moreTelstra Group Ltd (TLS) $3.78
Telstra’s 1H24 result was a slight miss, while FY24 guidance was updated towards the lower end of prior guidance. Hence, the stock has drifted lower over recent weeks. Also, TLS is regarded as a defensive stock, and as markets post fresh all-time highs, we are currently in a more “risk-on” environment which doesn’t help the telcos' relative performance. However, the dividend was lifted to 9c, putting the stock on a yield close to 5%. Read moreHistory of Actions for the Income Portfolio
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